Want to create value with your idle coins? DEX liquidity mining is a great option.
You can provide liquidity for specific trading pairs on a leading DEX platform, which is essentially becoming a market maker for that trading pair. Every time someone trades within this pair, you share a proportion of the trading fees, plus additional rewards from the platform—this is the core income source for LPs.
How does the distribution work? Simply put: the larger your share of the liquidity and the longer you lock it in, the more fees you earn. Especially for high-trading-volume pairs (like BTC/USDT, ETH/USDT, BNB/USDT), the fee yields can be quite attractive.
However, to be honest, this activity isn't risk-free. The biggest risk is impermanent loss—when the price ratio of the two assets in the pair fluctuates significantly, your principal can be diluted. So, when choosing trading pairs, think carefully: pairs with stable liquidity and minimal price volatility are the smarter choice.
In simple terms: suitable for HODLers, as it can generate passive income without constantly monitoring the market, but always assess the risks carefully.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
19 Likes
Reward
19
9
Repost
Share
Comment
0/400
MEVHunter_9000
· 6h ago
Impermanent loss is really intense. Last time I was mining, I got stuck directly, and now I have a psychological shadow over LP.
View OriginalReply0
ShitcoinArbitrageur
· 6h ago
I'm thinking, impermanent loss can really bankrupt people. A few days ago, I saw an older brother suffer a huge loss, and he's still sighing and complaining in the group.
View OriginalReply0
GateUser-e19e9c10
· 01-05 17:29
Impermanent loss really requires attention. My friend directly lost over 20% two weeks ago. Don't ask me how I know.
View OriginalReply0
NonFungibleDegen
· 01-04 20:34
ngl, impermanent loss gonna wreck half of u anyway but ok ser
Reply0
ImpermanentSage
· 01-03 23:52
Impermanent loss is really a trap. I got burned once and never dared to go all-in again.
View OriginalReply0
BugBountyHunter
· 01-03 23:47
Impermanent loss is a pit I’ve fallen into before. Don’t jump in just for high returns; choosing the wrong trading pair can lead to heavy losses.
View OriginalReply0
ApeWithNoChain
· 01-03 23:46
You really need to be careful with impermanent loss. I previously suffered a loss in a certain scam project—an expensive lesson.
View OriginalReply0
WhaleSurfer
· 01-03 23:45
Impermanent loss is really a trap, a personal story of blood and tears, almost bankrupting me.
View OriginalReply0
VibesOverCharts
· 01-03 23:27
Impermanent loss is truly unavoidable; last time, I got completely wiped out in that small altcoin pair...
Want to create value with your idle coins? DEX liquidity mining is a great option.
You can provide liquidity for specific trading pairs on a leading DEX platform, which is essentially becoming a market maker for that trading pair. Every time someone trades within this pair, you share a proportion of the trading fees, plus additional rewards from the platform—this is the core income source for LPs.
How does the distribution work? Simply put: the larger your share of the liquidity and the longer you lock it in, the more fees you earn. Especially for high-trading-volume pairs (like BTC/USDT, ETH/USDT, BNB/USDT), the fee yields can be quite attractive.
However, to be honest, this activity isn't risk-free. The biggest risk is impermanent loss—when the price ratio of the two assets in the pair fluctuates significantly, your principal can be diluted. So, when choosing trading pairs, think carefully: pairs with stable liquidity and minimal price volatility are the smarter choice.
In simple terms: suitable for HODLers, as it can generate passive income without constantly monitoring the market, but always assess the risks carefully.